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Once again the main news surrounded Monte dei Paschi. With the world’s oldest bank rapidly running out of time to raise the €5 billion in capital it desperately needs – it’s only managed €2 billion so far, with a key Qatari investors choosing not to invest a €1 billion chunk – it looks like MPS will be forced into a government bailout. Italy approved a €20 billion increase to its debt ceiling yesterday, freeing up money for its ailing banks, starting with Monte dei Paschi.

This news has begun to drag on the rest of the European banking sector, with the likes of Deutsche Bank, Barclays and Lloyds all dipping their toes into the red after the bell. This in turn capped the region’s indices, with the DAX and CAC falling 0.1% and 0.2% respectively.

Though this afternoon provides one final pre-Christmas wave of US data, this morning’s economic calendar is depressingly empty, meaning the European indices may well end up stuck in the same lifeless trading patterns that plagued the first half of the week.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Connor Campbell

Connor Campbell

Connor joined Spreadex in 2014 as part of a newly expanded financial analyst team after graduating from the University of Southampton with an MA in English. His focus is on providing Spreadex's customers with up-to-date and informative news, and is responsible for the market analysis found on the Spreadex website.

Connor produces three daily market updates, a daily stock earnings preview, a weekly financial market preview piece every Friday, a round-up of all the big financial stories making the weekend press every Monday morning and regular stock market features.

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